Equity Profile

BWA

BorgWarner Inc.

Consumer DiscretionaryAutomotive Parts & Equipment$13.8B

Jul30Thu

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

BorgWarner Inc. (BWA) is a leading supplier of automotive parts and equipment, primarily focusing on technologies that enhance vehicle efficiency and performance....

Key Metrics to Watch

EPS

Earnings per share is a critical measure of profitability and will indicate how well the company is managing costs and driving revenue.

$1.27

Revenue

Total revenue reflects the company's sales performance and overall market demand for its products, which is crucial in the current competitive landscape.

$3.6B

Wall Street expectations, options signals, track record, and call prep available with Pro.

BWA Q2-2026 Earnings Preview

Context

Company Snapshot

BorgWarner Inc. (BWA) is a leading supplier of automotive parts and equipment, primarily focusing on technologies that enhance vehicle efficiency and performance. As the automotive industry shifts towards electrification and sustainability, BorgWarner's innovations in powertrain technologies position it as a key player in the consumer discretionary sector.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+13.74%

Avg Stock Reaction

+5.79%

Last Quarter Recap

In Q1-2026, BorgWarner reported an EPS of $1.24, exceeding expectations by 6.8%. The stock reacted positively, gaining 3.75% the following day.

Management Promises & Guidance

Continue to focus on developing electric vehicle components.
Expand market share in hybrid and electric powertrains.
Enhance operational efficiencies to improve margins.

Expectations

Wall Street Expectations

Analysts are generally optimistic about BorgWarner's upcoming earnings, expecting it to meet or slightly exceed EPS and revenue targets.

Bull Case

If BorgWarner continues its trend of beating earnings estimates, it could signal strong demand for its products, especially in the growing electric vehicle market.

Bear Case

Conversely, any signs of declining revenue or increased costs could raise concerns about the company's ability to maintain profitability in a competitive environment.

Key Metrics to Watch

EPS

$1.27

Earnings per share is a critical measure of profitability and will indicate how well the company is managing costs and driving revenue.

Revenue

$3.6B

Total revenue reflects the company's sales performance and overall market demand for its products, which is crucial in the current competitive landscape.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will EPS exceed the consensus estimate of $1.27?

A beat on EPS would reinforce the company's strong performance trend and could lead to a positive market reaction.

What are the revenue expectations for electric vehicle components?

Given the industry's shift towards electrification, insights into revenue from this segment will be crucial for assessing future growth potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for BorgWarner's electric vehicle segment to drive significant revenue growth this quarter.

Supporting Evidence

BorgWarner's recent investments in EV technology could lead to higher-than-expected sales.

The company's historical performance shows a consistent ability to exceed EPS estimates, suggesting a potential upside.

Options pricing indicates a higher expected move than historical averages, reflecting investor anticipation.

Key Risk

If revenue from electric vehicle components significantly exceeds expectations, it could shift market sentiment dramatically.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is closely watching BorgWarner's ability to sustain its growth trajectory amidst increasing competition in the automotive parts sector.

Bull Confirmed If

An EPS of $1.30 or higher would confirm strong operational performance and demand.

Bear Confirmed If

An EPS below $1.19 would raise concerns about profitability and market competitiveness.

Pre-Earnings Positioning

Options Market

Implied Move

±26.22%

Historical Avg

±6.5%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect volatility around the earnings announcement.

Options are pricing ±26.2% while BWA has averaged ±6.5% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

42.5%

Calls (915K)P/C Ratio: 0.14Puts (85K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Consumer Discretionary

n=30

Fade rate: 8 of 21 (38%)

This setup has occurred 30 times across Consumer Discretionary in the last 2 years. 13 of 21 (62%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 4.9%, with a raw directional average of +2.2% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If BorgWarner beats expectations, history suggests the stock could rise by about 5.79%, confirming the bullish outlook on demand.

In-Line / Cautious

If results are in line with expectations, the stock may see a muted reaction as investors await further guidance.

Miss

A miss could lead to a decline, with historical data suggesting an average drop of around 6.54% following disappointing results.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Details on revenue growth from electric vehicle components.
2Any updates on cost management strategies.
3Insights into market share changes in the automotive parts sector.
4Management's outlook on future demand for hybrid and electric vehicles.
5Comments on supply chain stability and its impact on production.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

BorgWarner Inc. (BWA) is a leading supplier of automotive parts and equipment, primarily focusing on technologies that enhance vehicle efficiency and performance....

Key Metrics to Watch

EPS

Earnings per share is a critical measure of profitability and will indicate how well the company is managing costs and driving revenue.

$1.27

Revenue

Total revenue reflects the company's sales performance and overall market demand for its products, which is crucial in the current competitive landscape.

$3.6B

Wall Street expectations, options signals, track record, and call prep available with Pro.

BWA Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+13.74%

Avg Stock Reaction

+5.79%

Last Quarter Recap

In Q1-2026, BorgWarner reported an EPS of $1.24, exceeding expectations by 6.8%. The stock reacted positively, gaining 3.75% the following day.

Management Promises & Guidance

Continue to focus on developing electric vehicle components.
Expand market share in hybrid and electric powertrains.
Enhance operational efficiencies to improve margins.

Expectations

Wall Street Expectations

Analysts are generally optimistic about BorgWarner's upcoming earnings, expecting it to meet or slightly exceed EPS and revenue targets.

Bull Case

If BorgWarner continues its trend of beating earnings estimates, it could signal strong demand for its products, especially in the growing electric vehicle market.

Bear Case

Conversely, any signs of declining revenue or increased costs could raise concerns about the company's ability to maintain profitability in a competitive environment.

Key Metrics to Watch

EPS

$1.27

Earnings per share is a critical measure of profitability and will indicate how well the company is managing costs and driving revenue.

Revenue

$3.6B

Total revenue reflects the company's sales performance and overall market demand for its products, which is crucial in the current competitive landscape.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will EPS exceed the consensus estimate of $1.27?

A beat on EPS would reinforce the company's strong performance trend and could lead to a positive market reaction.

What are the revenue expectations for electric vehicle components?

Given the industry's shift towards electrification, insights into revenue from this segment will be crucial for assessing future growth potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for BorgWarner's electric vehicle segment to drive significant revenue growth this quarter.

Supporting Evidence

BorgWarner's recent investments in EV technology could lead to higher-than-expected sales.

The company's historical performance shows a consistent ability to exceed EPS estimates, suggesting a potential upside.

Options pricing indicates a higher expected move than historical averages, reflecting investor anticipation.

Key Risk

If revenue from electric vehicle components significantly exceeds expectations, it could shift market sentiment dramatically.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is closely watching BorgWarner's ability to sustain its growth trajectory amidst increasing competition in the automotive parts sector.

Bull Confirmed If

An EPS of $1.30 or higher would confirm strong operational performance and demand.

Bear Confirmed If

An EPS below $1.19 would raise concerns about profitability and market competitiveness.

Pre-Earnings Positioning

Options Market

Implied Move

±26.22%

Historical Avg

±6.5%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect volatility around the earnings announcement.

Options are pricing ±26.2% while BWA has averaged ±6.5% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

42.5%

Calls (915K)P/C Ratio: 0.14Puts (85K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Consumer Discretionary

n=30

Fade rate: 8 of 21 (38%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If BorgWarner beats expectations, history suggests the stock could rise by about 5.79%, confirming the bullish outlook on demand.

In-Line / Cautious

If results are in line with expectations, the stock may see a muted reaction as investors await further guidance.

Miss

A miss could lead to a decline, with historical data suggesting an average drop of around 6.54% following disappointing results.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Details on revenue growth from electric vehicle components.
2Any updates on cost management strategies.
3Insights into market share changes in the automotive parts sector.
4Management's outlook on future demand for hybrid and electric vehicles.
5Comments on supply chain stability and its impact on production.